Adam Holmes is the Processing Manager of Empire Mortgage Company, a firm that processes loan applications for a number of regional builders. Home buying and therefore mortgage processing is a highly seasonal business, and requires temporary staff during busy processing periods. Holmes hires staff on a monthly basis from two different temporary staffing firms - Professional Temps (PT) and Support on Demand (SD). In June, Empire hired 14 staff members from PT and 10 from SD. PT is a more established firm and SD is a newly organized firm in the staffing market. Holmes has compiled the following information for June:
Budgets for June |
PT staff |
SD staff |
Budgeted hourly rate |
$50 |
$45 |
Budgeted time per app. (hours) |
1.2 |
1.4 |
Actual results for June |
PT staff |
SD staff |
Actual hourly rate |
$52 |
$47 |
Actual time per app. (hours) |
1.4 |
1.2 |
Number of actual apps completed |
2,604 |
1,600 |
Questions:
Adam Holmes is the Processing Manager of Empire Mortgage Company, a firm that processes loan applications...
Problem 1 Adam Holmes is the Processing Manager of Empire Mortgage Company, a firm that processes loan applications for a number of regional builders. Home buying and therefore mortgage processing is a highly seasonal business, and requires temporary staff during busy processing periods. Holmes hires staff on a monthly basis from two different temporary staffing firms - Professional Temps (PT) and Support on Demand (SD). In June, Empire hired 14 staff members from PT and 10 from SD. PT is...